Minstrels execute in Athlone on two January 2017. Archive Picture: Ashraf Hendricks
A report by attorneys Dabishi Nthambeleni into a R27.three-million grant via the Countrywide Lotteries Fee for the Cape Town Minstrel Carnival Association (CTMCA) to get a minstrels museum has uncovered no evidence that a museum at any time existed.
The investigators located the CTMCA didn't use the R5-million allotted to acquire or make a museum.
They also discovered the CTMCA only bought land worthy of R1.7-million, not R5-million as allocated.
They uncovered the CTMCA utilized cash within the Lottery to purchase workshop tools from amongst its own directors, Richard “Pot” Stemmet.
A leaked forensic report reveals how numerous rand granted towards the Cape Town Minstrel Carnival Affiliation (CTMCA) via the National Lotteries Fee (NLC) to set up a museum to rejoice the town’s wealthy minstrel record went astray. The museum was by no means established.
The small print in the abuse of countless rands of Lottery funds for just a museum that in no way was are exposed within an investigative report commissioned through the NLC in 2021.
The museum grant was part of more than R64-million in Lottery resources allocated towards the CTMCA between 2003 and 2017.
The initial A part of the investigation, by regulation organization Dabishi Nthambeleni, was carried out between September 2020 and January 2021 and focused on a R27.3-million grant to your CTMCA in 2014, which bundled funding to the museum. The accredited price range to the museum was much more than R12.eight-million, with R5-million of that allotted for any building to accommodate the museum.
Read through the report (PDF, 7MB)
The NLC tasked Dabishi Nthambeleni to analyze the acquisition of a developing for your museum and if the museum “basically existed”.
The company was also instructed to research
the purchase with Lottery money of two autos – a sixty-seater bus as well as a 23-seater bus – for R2.four-million; and
several machines “procured for the manufacturing of your costumes and hats” for that minstrels carnival, for R5.4-million.
At enough time, convicted legal Richard “Pot” Stemmet was director of your CTMCA. He was appointed a director on the CTMCA in September 1996. He resigned in December 2016 but his spouse Zainonesa and daughter Raziah ongoing as two of a number of directors with the organisation. Stemmet was reappointed as a director in Could 2021.
The investigation followed intensive reporting by GroundUp with regards to the millions of rands of Lottery funding allocated towards the CTMCA (see right here, right here and listed here) and the best way the money in all probability aided finance the ANC’s 2014 election campaign inside the Western Cape, led by at the time by Marius Fransman.
The building on the right was the intended web-site with the minstrels’ museum, in the midst of an industrial area in Primrose Park, Cape City. Photo: Raymond Joseph
In response to some Parliamentary query, former NLC Commissioner Thabang Mampane outlined grants to three CTMCA “assignments” - including the museum - between 2012 and 2015. All three initiatives had been done, she advised MPs.
Even so the investigators located no evidence that a museum had at any time existed.
At first the museum was because of open in rented premises in Crete Street, Wetton. A photograph received by GroundUp of your meant Wetton museum exhibits a espresso store with a few musical instruments and minstrel costumes and collages of pics haphazardly hung within the partitions, in addition to a model ship on its plinth inside a corner.
In its report, Dabishi Nthambeleni mentioned it was “not in a position” to substantiate if a museum had ever operated from these premises.
Stemmet advised the investigators the museum had been moved mainly because they could no longer pay for the rent of R100,000 per month. He said the CTMCA experienced procured house for R1.seven-million in Schaapkraal to the museum, but couldn't get it rezoned, and had been sold for a similar price tag. Schaapkraal is inside a peri-urban location far from the town.
Due to this fact, the museum were moved to a different area in Primrose Park in February 2021, Stemmet explained to the Dabishi Nthambeleni investigators. But right after browsing the premises, which can be in an industrial place, the investigators stated they doubted irrespective of whether a proper museum existed there. Pics hooked up on the report present a mishmash of randomly exhibited uniforms, musical instruments and assorted minstrel paraphernalia nailed to the wall, shown on tables and spread out on the floor, without explanation.
“You will find there's nominal volume of things on the museum [that] by no means symbolize the more than 100-yr background of your Cape City Carnival, the investigators said, incorporating that there was “no signage outside the house the premises indicating that they housed a museum and … commonly, the museum does not glimpse for being open to the general public.”
The CTMCA experienced breached the grant arrangement, Dabishi Nthambeleni observed, by going the location on the museum to an alternate area devoid of notifying the NLC.
The Schaapkraal house, on which no museum was ever crafted. Image: Raymond Joseph
Buses
Stemmet explained to the investigators the CTMCA had to move from the rented Crete Street premises since it experienced run up a R4-million debt with the town of Cape City and was concerned its tools could well be attached.
“Because of the authorized battles and the debts, the organisation had to maneuver its assets from 5 Crete Street to stay away from the sheriff from attaching the property in the organisation,” Stemmet instructed the investigators.
Sedrick Soeker, The present director in the CTMCA, instructed them the two buses purchased with lottery money ended up saved in a key spot “concealed from the Sheriff”. However the investigators said they were being not able to confirm that any buses experienced ever been acquired.
Stemmet also confirmed which the buses had been concealed to prevent them staying seized. But once the investigators requested to become taken to your location where the buses have been saved, he explained to them that “the owner of The key location was not accessible to open up the premises for us”.
“The CTMCA couldn't supply proof of payment for two autos that it allegedly procured with grant funds,” the investigators described.
Soeker also instructed them the Schaapkraal residence were offered because of the financial debt.
“Mr Soeker discussed that Based on his knowing, a result of the financial debt owed to town of Cape Town, the CTMCA determined it would be best to offer their [Schaapkraal] property … also to also to hide the assets of your CTMCA to stay away from the sheriff from attaching the assets.”
JP Smith, Cape Town’s mayco member for protection and safety, has Earlier told GroundUp the CTMCA “threw revenue absent” on litigation with the City.
“Annually like clockwork, as we solution the top from the yr, the CTMCA picks a authorized battle with the City, above permits or another thing. We by no means initiate it. They maintain throwing revenue absent on vexatious litigation they drop and have costs awarded versus them. This really is solely self-inflicted,” he said.
Soeker explained to the Dabishi Nthambeleni investigators that the leading part players on issues of Lottery funding had been Stemmet and former CTMCA board member Kevin Momberg, “who were being accountable for each of the admin, funds and jogging ltpbet the CTMCA.” The investigators said they had been unable to Get hold of Momberg.
Hats
Throughout their “investigation in loco” with the Primrose Park premises, the investigators “observed a lot of devices, some in excellent problem, some in undesirable issue and several that seemed rusty and extremely aged”. Stemmet explained to the investigators that there was also an off-web page storage facility wherever “instruments and some equipment” were saved.
“We requested him to take us to the power but he was evasive to our ask for.”
Depending on pictures and invoices in GroundUp’s possession, some, Otherwise all, from the merchandise appear to be products which was illegally removed from the CTMCA’s preceding premises. Stemmet is dealing with prices for this removing.
According to the closing development report submitted to your NLC by the CTMCA, the machinery was acquired from Martin-Conne Milliners, a corporation by which Stemmet, his spouse and his daughter were being administrators at enough time.
The investigators located this “alarming”.
“Through the CIPC lookup of Martin-Conne Milliners along with the invoices submitted, we Notice the following alarming getting: Mr Stemmet himself is a director of Martin-Conne Milliners. The registered handle of the business is five Crete Street, Wetton, Cape City, a similar address on which the museum was meant to be constructed and/or converted,” they claimed.
An audit by accountants Kopano Integrated, connected to the investigative report, recorded the CTMCA was in the entire process of purchasing “machinery, plant and stock” valued at R8.1-million from Stalph 164 CC, buying and selling as Martin-Conne Milliners. Staph 164 was a detailed Company of which Stemmet was certainly one of the directors.
In keeping with Dabishi Nthambeleni, the company has compensated R1.2-million as being a deposit, which means R6.nine-million continues to be owed, although there is no payment date established for when this has to be compensated.
The Kopano audit along with the shut backlink among the businesses “reveal to us that there's ‘foul Perform’ linked to the purchase in the equipment of your museum workshop”, the investigators mentioned during the report.
“We find that it is remarkably possible that CTMCA utilized the funding in the NLC to ‘refund’ considered one of its primary directors for your house at an increased overpriced amount than the particular selling price and worth of the residence and/or equipment.”
Suggestions
Dabishi Nthambeleni concluded that it was not able to ascertain how the grant for the CTMCA were put in.
“Actually, an in depth report on how the funding with the NLC was utilised, could be impossible since the CTMCA doesn't have any receipts, or proof of payments to verify the quantities spent on Just about every product it requested funding for. The interim report and last report on the CTMCA only connect invoices,” Dabishi Nthambeleni concluded.
The investigators uncovered which the NLC experienced not conducted a web site check out in advance of approving the grant. But this was not normal apply at the time they usually observed no evidence of negligence by NLC personnel.
At enough time, the NLC’s guidelines did not have to have funded organisations to submit proof of payment with interim experiences, they pointed out. This intended that the CTMCA was able to get a 2nd tranche of funding without needing to present proof that it had used the main tranche for its meant intent.
Adhering to the appointment of a different board, commissioner and senior govt team, the NLC has tightened up on these and various problems.
Dabishi Nthambeleni advisable that
the NLC decrease any upcoming funding applications from your CTMCA;
the CTMCA and any associates who had been associated with the grant be subjected for the NLC’s “delinquency” method;
the NLC open a prison scenario of fraud with SAPS or perhaps the Hawks for allegations of fraud; and
the NLC commence the process of recovering the misappropriated resources.
But, in lieu of act within the report’s tips, the NLC – underneath its prior administration – chose to suppress it, mainly because it had done While using the preceding experiences into corruption it had commissioned.
GroundUp despatched concerns to Stemmet and Soeker by way of SMS, and requested for e mail addresses to send the inquiries by e mail much too. But no reaction were been given at the time of publication.
The minstrel “museum” in Crete Road, Wetton. Photo: Raymond Joseph